02182cam a22002897 4500001000700000003000500007005001700012008004100029100002400070245011600094260006600210490004200276500002000318520087900338530006101217538007201278538003601350690005601386690006401442690015201506700002101658700001901679710004201698830007701740856003801817856003701855w14310NBER20161210000820.0161210s2008 mau||||fs|||| 000 0 eng d1 aFerreira, Fernando.10aHousing Busts and Household Mobilityh[electronic resource] /cFernando Ferreira, Joseph Gyourko, Joseph Tracy. aCambridge, Mass.bNational Bureau of Economic Researchc2008.1 aNBER working paper seriesvno. w14310 aSeptember 2008.3 aUsing two decades of American Housing Survey data from 1985-2005, we estimate the impact on household mobility of owners having negative equity in their homes and of rising mortgage interest rates. We find that both lead to lower, not higher, mobility rates over time. The impacts are economically large, with mobility being almost 50 percent lower for owners with negative equity in their homes. This does not imply that current worries about defaults and owners having to move from their homes are entirely misplaced. It does indicate that, in the past, the lock-in effects of these two factors were dominant over time. Our results cannot simply be extrapolated to the future, but policy makers should begin to consider the consequences of lock-in and reduced household mobility because they are quite different from those associated with default and higher mobility. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aR0 - General2Journal of Economic Literature class. 7aR21 - Housing Demand2Journal of Economic Literature class. 7aR23 - Regional Migration • Regional Labor Markets • Population • Neighborhood Characteristics2Journal of Economic Literature class.1 aGyourko, Joseph.1 aTracy, Joseph.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w14310.4 uhttp://www.nber.org/papers/w1431041uhttp://dx.doi.org/10.3386/w14310